 Fiscal policy and private investment. Latin America in a comparative perspectiveEmilio Caballero U. () and Julio López G. () Brazilian Journal of Political Economy, 2012, vol. 32, issue 2, 241-259 Abstract: The main objective of the paper is to assess the impact of fiscal variables on private investment comparing some Latin American economies to other advanced ones. For such purposes, the authors carry out an econometric analysis for the period 1990-2008. They make use of two dynamic panel models in which they group countries with similar characteristics and development levels. In one of them, they include Mexico, Brazil, Chile, Colombia and Uruguay; whereas in the second one the countries accounted for are the U.S., Canada, Spain, Korea, Ireland and Japan. They specify in both models an investment function using as arguments a wide range of variables, including those related with fiscal policy. From their results the authors infer that governments can, with higher spending, boost up the economy even when they finance spending with higher taxes. In Latin America, where income concentration is enormous, a proposal to boost up the economy through higher government expenditure financed with a progressive income tax, is even more justified. JEL Classification: E1; E6; H6. Keywords: Latin America; fiscal policy; macroeconomic model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:32:y:2012:i:2:p:241-259:id:352 Access Statistics for this article More articles in Brazilian Journal of Political Economy from Center of Political Economy |
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